Wall Street Surges to Record Highs with Nvidia's Rise and Megacap Earnings Looming By: Stock Market Charlie

Traders and specialists actively engage on the bustling floor of the New York Stock Exchange, closely monitoring market trends and executing transactions.

Summary

Microsoft Soars After OpenAI Restructuring Triumph!

Exciting Megacap Results Await This Week!

Nvidia to Construct AI Supercomputers for U.S. Energy Department!

Indexes: Dow up 0.3%, S&P 500 up 0.2%; Nasdaq up 0.8%

All three major U.S. stock indexes hit new record highs on Tuesday! Nvidia shares skyrocketed after announcing its plan to build AI supercomputers for the U.S. energy department, fueling investor optimism about upcoming corporate earnings from megacap giants!

Nvidia CEO Jensen Huang revealed the company will construct seven supercomputers for the U.S. Department of Energy and boasts $500 billion in AI chip bookings!

Nvidia's stock soared 5%, adding over $230 billion in market value, bringing the company tantalizingly close to a $5 trillion valuation!

Adding to the excitement, Microsoft shares jumped 2% after clinching a deal that allows OpenAI to restructure into a public benefit corporation, while securing a 27% stake in the ChatGPT creator!

Anticipation is building for quarterly results from Apple, Microsoft, Alphabet, Amazon, and Meta Platforms this week! Investors eagerly await insights into AI spending. Apple shares edged up 0.1%, with the company crossing an incredible $4 trillion in market value for the first time!

"Momentum and earnings are pushing the market higher," exclaimed Peter Cardillo, chief market economist at Spartan Capital Securities in New York. "Earnings have been good, and we're eagerly awaiting the big tech stocks!"

Investors are also buzzing over trade-related news. The Wall Street Journal reported that U.S. President Donald Trump and Chinese leader Xi Jinping will discuss a trade framework to reduce U.S. tariffs on Chinese goods in exchange for Beijing's commitment to curb exports of fentanyl precursor chemicals.

The Dow Jones Industrial Average climbed 161.78 points, or 0.34%, to 47,706.37, the S&P 500 rose 15.73 points, or 0.23%, to 6,890.89, and the Nasdaq Composite surged 190.04 points, or 0.8%, to 23,827.49!

In Tokyo, Trump praised Japan's first female leader, Sanae Takaichi, as they signed a deal to boost supplies of critical minerals and rare earths, aiming to reduce China's dominance in key electronic components!

QUARTERLY EARNINGS ON THE RISE!

With results in from 180 of the S&P 500 companies, third-quarter earnings are estimated to have climbed 10.5% from last year, surpassing earlier projections, according to LSEG data!

On Wednesday, the Federal Reserve is widely anticipated to announce a 25-basis-point interest rate cut. Investors are eager for any details on the rate outlook, especially considering the U.S. government shutdown has delayed crucial economic data, leaving traders reliant on private releases and corporate announcements.

A preliminary estimate from the ADP National Employment Report showed the U.S. economy added an average of 14,250 jobs in the four weeks ending October 11!

Despite the positive ADP data, layoff announcements from big companies like Amazon tempered the enthusiasm, analysts noted.

Shares of United Parcel Service soared 8% after the company posted impressive results, signaling its overhaul is gaining momentum. UPS has been closing hundreds of facilities, cutting thousands of jobs, and offering buyouts to union drivers as part of its largest-ever overhaul, aiming to slash costs by $3.5 billion by 2025!

After the closing bell, Visa shares edged higher after the company reported a rise in quarterly adjusted profit amid strong transaction volumes. Visa's stock ended the regular session slightly down by 0.3%.

On the NYSE, declining issues outnumbered advancers by a 1.35-to-1 ratio. There were 613 new highs and 102 new lows. On the Nasdaq, 1,868 stocks rose while 2,862 fell, with declining issues outnumbering advancers by a 1.53-to-1 ratio.

Volume on U.S. exchanges was 20.5 billion shares, compared to the 20.96 billion average for the last 20 trading days.

Best Regards,

Stock Market Charlie